Gold is considered a precious metal because of its rarity and malleability. Unlike silver, it does not tarnish. Because its value tends to rise over the long run, people have used it as a way to store and preserve their wealth. However, its value does fluctuate over the course of the year. If you're interested in becoming a gold buyer, either as an investment or a gift, it pays to buy it at the right time. To help, Smith Jewelry & Coins, an experienced coin dealer in St. Charles, MO, discusses the best time to buy this precious metal.

When Should You Buy Gold?

Timing the Market

The price of gold tends to start off the year at its low point, immediately after Christmas and New Year’s Day. It then rises steadily for the next few months before plunging to another low point again in March. After this month, it surges again through the summer. Many people who try to time the gold market feel they get the best deals when buying in March.

During Times of Uncertainty

The price of gold also tends to rise during times of uncertainty and crisis. For instance, after 9/11, gold prices skyrocketed and surged upward for three years as investors moved money into a more stable commodity. Even without an emergency, when other markets are shaky, gold prices tend to rise. If you are an early gold buyer, you can expect this investment to increase.

Investing for the Long Term

No matter when you buy it, gold is a safe long-term investment since its value usually increases every year. Although it does have its corrections, or price drops, gold buyers usually find that it’s relatively nonvolatile as an investment.

To discuss a gold purchase, contact Smith Jewelry & Coins, a venerable gold buyer and coin dealer in St. Charles. They've been serving the community for more than 50 years and carry a wide selection of precious metals, stones, and jewelry. Visit their website to view a map and store hours, or call (636) 441-6789 to speak to a precious metals specialist.